He can not have his cake and eat it too.

The opportunity value of your dead equity is eating all your cash flow and turning your investment into a liability.

I would not suggest you take a loan from your 401k as there are usually penalties and significant charges that can eat away at your profit. 

It sucks It has to be thIs way but It’s a dog eat dog world and people will steam roll over you if given the chance

The idea is that the occupant cooks and eats meals with the family in the one full kitchen.

But that is exactly what the inspector to my buyer a recent home I sold. the only separate inspection you should have is a wood eating insect report. 

It would not take much of an innocent human error (overlooking some roffing/plumbing/electric problem) to eat that up quick.Taking appreciation out of the equation (cause that is educated speculatiin and I do not know your market), I dont thinking tying up the down payment is worth it.

Land Transfer Tax eats you alive upfront especially in 416.. 

We're also a bit worried about the owner-paid utilities, as this could definitely eat into cash flow. 

There was a lot I thought we could get done on a shorter timeline, but once I realized that there were bigger more pressing issues that needed to be addressed before we could fix the things I thought needed to be fixed, I realized that would eat up my budget, and kill my time line.